Actual Breaking News.

Bowing to political reality ...... state House Democrats have dropped their push to increase Pennsylvania's sales tax from 6 percent to 6.5 percent to provide additional money for property tax reform.The Dems say they abandoned the plan after it became clear earlier this week that the state Senate wasn't going to bend in its opposition to a tax hike of any kind. The half-percent increase would have netted between $700 million and $750 million in additional tax relief for homeowners, said Mike Manzo, the chief of staff to House Minority Leader H. William DeWeese, D-Greene.The best bet for tax relief now, it seems, is a Rendell administration-backed proposal to boost income eligibility limits in the state's Property Tax Rent/Rebate program for senior citizens.The program, funded through the state lottery, would provide tax breaks for hundreds of thousands of seniors, and eliminate property taxes altogether for many, once gambling revenue begins to flow sometime in 2008, supporters claim."The only other option is to do nothing," Manzo said.DeWeese, meanwhile, says he'd like to continue his push, but "I am realistic enough to know that I haven't convinced enough people to move in that direction."Rep. Lynn Herman, the Centre County Republican who's chairing the joint House and Senate committee on tax reform said no formal proposals have been made yet, and says he's certain that there will be "areas where we disagree" with the Democrats."We're going to work together," to reach a settlement, Herman said.The conference committee meets for the first time next Monday (March 27) at 1 p.m. in the House Majority Caucus Room at the Capitol.On Thursday, Manzo characterized this new development as a first step, and says Democrats want to build consensus on additional reform measures -- most likely after the May 16 primary."We'd like to continue the dialogue down the road,": he said.